Docket: EBSA-2010-0050 

Definition of the Term ‘‘Fiduciary’’ 

Comment On: EBSA-2010-0050-0001 

Definition of the Term Fiduciary 

Document: EBSA-2010-0050-DRAFT-0009 

Comment on FR Doc # 2010-26236 

Submitter Information 

Name: Billy D Mires 

Address: 

7658 Firethorn Drive 

Fayetteville, NC, 28311 

Email: mires5@bellsouth.net 

General Comment 

See attached file(s) 

Attachments 

PUBLIC 

SUBMISSION 

As of: December 22, 2010 

Received: December 17, 2010 

Status: Pending_Post 

Tracking No. 80bb9622 

Comments Due: January 20, 2011

Submission Type: Web

EBSA-2010-0050-DRAFT-0009.1: Comment on FR Doc # 2010-26236

Page 1 of 1

https://fdms.erulemaking.net/fdms-web-agency/component/submitterInfoCoverPage?Call... 12/22/2010
Definition of Fiduciary Proposed Rule 

 I implore the committee to emphatically vote yes to the proposed rule under the 

Employee Retirement Income Security Act (ERISA) that, upon adoption, would 

protect beneficiaries of pension plans and individual retirement accounts by more broadly 

defining the circumstances under which a person is considered to be a ``fiduciary'' by reason of 

giving investment advice to an employee benefit plan or a plan's participants. 

 This is a long overdue change to the federal regulations that concern this very important 

subject. The law has not been updated since 1975. In the last thirty five years we have seen the 

conversion from Defined Benefit Plans (pensions) to self financed Benefit Plans (401K). 

Unfortunately the regulations have not kept pace with the current investment Market place. 

 A fiduciary is defined as someone who has a legal duty of loyalty and faithfulness 

towards another. However this is not occurring and millions of future retirement beneficiaries are 

in danger from mismanagement. As recently as 2009, the Government Accountability Office 

(GAO) found that many opportunities exist in the 401(k) marketplace for plans to hire service 

providers that have business arrangements that could give rise to conflicts of interest. The GAO 

noted that plans often hire consultants and other advisers to provide advice regarding investment 

options and products that should be offered under the plan and to monitor the performance of the 

selected investments. In some cases, consultants receive compensation from the investment 

companies whose products they recommend to the plan, which could lead them to steer the plans 

toward products for which they receive additional compensation. These arrangements can be 

harmful to plan beneficiaries. Due to the increased complexity of investment opportunities 

available to defined benefit plans, plan sponsors often seek investment advice from a broad range 

of service providers. Some of these service providers have business arrangements that can give 

rise to conflicts of interest. For example, in a May 2005 study, the Securities and Exchange 

Commission (SEC) staff found that 13 of the 24 pension consultants examined or their affiliates 

had undisclosed conflicts of interest, because they provided products and services to pension 
plan advisory clients, money managers, and mutual funds on an ongoing basis without 

adequately disclosing these conflicts. The SEC staff also found that the majority of examined 

pension consultants had business relationships with broker-dealers that raised a number of 

concerns about potential harm to pension plans. 

 This proposal will ensure that all citizens of this great land receive advice based on 

reliable information. This will ensure that all plan participants interests are protected in regard 

their future retirement benefits. Without this important regulation the Bernie Madoffs’ of the 

investment world will continue to take advantage from poor financial oversight.